Key Points
- Mexico is imposing new tariffs of up to 35% on imports from Asia.
- The measure primarily targets countries without free-trade agreements, such as China and India.
- The goal is to protect 350,000 Mexican jobs and boost local manufacturing. The tariffs are expected to generate an additional $3.76 billion in government revenue.
- Many analysts view this as a move to align with U.S. trade policy ahead of the USMCA review.
Mexico is preparing to implement a major new tariff plan that will increase tariffs on thousands of products imported from Asia. The new rules, which take effect this Thursday, will affect countries such as China, India, and South Korea the most. In a move that brings Mexico’s trade policy much closer to that of the United States, most of these new tariffs will be set at 35%.
The hikes will apply to a huge range of goods, including cars, clothing, plastics, and steel. While the Mexican government insists these tariffs are not targeting any one country, it is clear that China will bear the greatest impact.
President Claudia Sheinbaum says the goal is to protect Mexican jobs and boost domestic manufacturing. The government also estimates that the new taxes will generate an additional $3.76 billion in revenue next year, helping reduce the budget deficit.
However, many trade experts see a political motive behind this decision. They believe Mexico is trying to get on the good side of the Trump administration. The United States-Mexico-Canada Agreement (USMCA) is up for review soon, and Mexico wants to ensure those talks proceed smoothly.
By erecting barriers to Chinese goods, Mexico is demonstrating its willingness to partner with the broader U.S. trade strategy.
The move has not been without controversy. China has already voiced strong opposition to the new tariffs. Even within Mexico, some industries are concerned that higher taxes will simply drive up costs for businesses and consumers.
For now, the Mexican government is standing firm, arguing that protecting local jobs in sensitive sectors such as footwear and textiles is its top priority.
